You are driving home after work when another vehicle suddenly crashes into yours. The impact is severe, you are hurt, and after the initial shock, you discover something even more troubling: the at-fault driver has no insurance—or their policy limits are far too low to cover your injuries. For many accident victims in New Jersey and New York, this is not an unusual scenario. According to the Insurance Research Council, 15.4% of U.S. drivers are uninsured, and New Jersey has experienced one of the steepest increases, with approximately 14.1% uninsured. New York’s rate, at 8.6%, is lower yet still represents hundreds of thousands of vehicles on the road.
As premiums climb and more drivers shift to limited policies or forgo insurance altogether, accidents involving uninsured or underinsured drivers have become increasingly common. Understanding how UM/UIM coverage works is critical for any injured person navigating the recovery process.
The Growing Problem of Uninsured Drivers
New Jersey’s auto liability insurance minimums have undergone a two-step increase:
- Before 2023: $15,000 per person / $30,000 per accident in bodily injury liability and $5,000 in property damage liability
- January 1, 2023: $25,000 / $50,000 / $25,000
- January 1, 2026: $35,000 / $70,000 / $25,000
However, New Jersey still permits the Basic Policy, which provides no bodily injury liability coverage unless the driver opts for a small optional $10,000 add-on. Basic Policy drivers also lack UM/UIM coverage unless they voluntarily purchase it, meaning many at-fault drivers legally carry no coverage at all for the injuries they cause.
Inflation, repair costs, and premium increases have pushed many drivers to reduce or cancel insurance, contributing to the rise of uninsured and underinsured motorists. Even where the at-fault driver carries insurance, minimum limits often fail to cover the true cost of medical care, wage loss, therapy, or long-term disability.
Understanding UM & UIM Coverage
Uninsured Motorist (UM) coverage applies when the at-fault driver has no insurance.
Underinsured Motorist (UIM) coverage applies when the at-fault driver has insurance, but the limits are too low to compensate you for your injuries.
UM and UIM are part of your own insurance policy, not the at-fault driver’s. These coverages can become the only avenues for financial recovery after a serious accident.
New Jersey: Standard vs. Basic Policies
Standard Policies include UM/UIM coverage matching the liability limits unless the insured selects lower limits. Basic Policies include no UM/UIM and no BI liability unless optional add-ons are purchased.
New Jersey’s “limitation on lawsuit” option (verbal threshold) may also restrict an injured person’s ability to pursue pain-and-suffering damages, making UM/UIM even more important.
New York UM/UIM Requirements
New York requires all drivers to carry $25,000 per person / $50,000 per accident in bodily injury liability coverage—often referred to as 25/50 limits. New York also mandates UM coverage at the same 25/50 levels, ensuring that minimally insured drivers still have basic protection if they are hit by a completely uninsured driver.
UIM/SUM (Supplementary Underinsured Motorist) coverage is optional, but highly recommended. SUM extends protection beyond the mandatory UM limits and allows an injured person to claim additional compensation when the at-fault driver’s insurance is inadequate — an increasingly common problem given today’s medical costs.
How UM/UIM Claims Work for Injured Victims
After an accident, UM/UIM claims require:
- Immediate notice to your insurance company
- Full exhaustion of the at-fault driver’s BI limits (for UIM)
- Comprehensive medical documentation
- Proof of wage loss, future treatment needs, and the extent of pain, suffering, or disability
- Persistent negotiation — and often arbitration — if the insurer undervalues your claim
Although UM/UIM involves “your own” insurer, the relationship becomes adversarial. The insurer’s incentive is to minimize payouts, not maximize your recovery.
Common Misconceptions
Many accident victims assume PIP and health insurance will cover everything. They do not. PIP covers medical expenses only — not pain, suffering, disability, or long-term wage loss.
UM/UIM claims also require strict compliance with notice requirements, and delays in treatment or reporting can weaken or destroy the claim.
When Injured Victims Should Seek Legal Help
Legal representation is especially important when:
- The at-fault driver is uninsured or fled the scene
- The at-fault driver’s limits cannot cover your injuries
- The crash involves a rideshare, rental, or employer vehicle
- Your insurer delays or undervalues your UM/UIM claim
- You suffered serious injuries such as TBI, spinal trauma, fractures, or permanent impairment
A personal injury attorney can evaluate coverage, prove damages, negotiate with the insurer, and, if necessary, pursue arbitration or litigation.
Were You Injured by an Uninsured or Underinsured Driver?
Accidents caused by uninsured or underinsured drivers often leave victims unsure of how to pay for treatment or support their families. If you were injured in New Jersey or New York and believe the other driver lacked adequate insurance, contact Song Law Firm at 201-461-0031 or pi@songlawfirm.com for a free consultation. Song Law Firm will stand with you and fight to protect your rights every step of the way.
Disclaimer: This column provides general information and is not legal advice for any specific case. Consult an attorney for guidance tailored to your situation.
